1.The marginal propensity to consume in this economy is2.The equilibrium level of output in this economy is Fill in the table below to answer the next five questions. Assume that IP, G and NX are fixed.Real GDP (Y)5000600070008000900010000a 0.90bCdConsumption (C)The marginal propensity to consume in this economy is0.50Question 36Homework Unanswered Due Today, 11:00 AM0.750.80Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.mwww.mmes652073208120KRONAUTthe sulle muceTontonQuestion 37CPlanned Investmentmomme Fille(Up)hallgUnanswered 1 attempt left1000GovernmentExpenditures (G)230Net Exports (NX)450Aggregate Expenditures(AE)Change inInventoriesSubmit

The marginal propensity to consume (MPC) is a concept in economics that measures the change in…

Answered: 1.The marginal propensity to consume in…

Business

Economics

1.The marginal propensity to consume in this economy is 2.The equilibrium level of output in this economy is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Consider the table given below. The marginal propensity to consume is a.0.2 b.0.4 0.0.6 d.0.8 National Income (GDP) Consumption Investment Government Expenditure 0 500 1,000 1,500 2.000 2,500 3.000 3,500 400 800 1.200 1.600 2,000 2,400 2,800 3.200 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Which of the following correctly describes how a decrease in the price level affects consumption spending? Select one: a. A decrease in the price level raises real wealth, which causes consumption to increase. b. A decrease in the price level decreases the amount of money a household needs to buy goods and so raises the interest rate, which causes consumption to increase. c. A decrease in the price level increases the amount of money a household needs to buy goods and so raises the interest rate, which causes consumption to increase. d. A decrease in the price level lowers real wealth, which causes consumption to decrease.
K The following equations describe consumption, investment, government spending, taxes, and net exports in the country of Economika. In Economika, equilibrium GDP is equal to $. (Round your asnwer the nearest dollar.) If real GDP in Economika is currently $4,850, which of the following is true? A. There will be an unplanned decrease in inventories, and real GDP will increase next period. OB. There will be an unplanned increase in inventories, and real GDP will increase next period. OC. There will be an unplanned decrease in inventories, and real GDP will decrease next period. O D. There will be an unplanned increase in inventories, and real GDP will decrease next period. OE. There will be no unplanned change in inventories, and real GDP will stay the same next period. C=200+0.80(Y-T) 1=400 G=350 T=350 X = 100
The tax rate is 0.4. The marginal propensity to import is 0.5 . When real GDP increases from $20,000 to $20,198, consumption increases from $18,000 to $18,050. What is the marginal propensity to consume?
Suppose that country Y is identical to country Z, with the exception that country Y's population has a lower marginal propensity to consume than country Z. Initially, both countries have the same level of real GDP. The diagram shows the expenditure curve for country Y. Using the line drawing tool, draw the expenditure curve of country Z in Figure 1. Label your curve 'Ez'. Carefully follow the instructions above and only draw the required object. Figure 1 Planned Expenditure ($, trillions) Real GDP, Y ($, trillions) Ex Select ✓ Line
Economics
Nobel-winning Keynesian economist spend (on average) an extra $ Paul Samuelson taught in his influential textbook that when a family gets an extra $1000 in income this year, this causes them to on consumer goods that same year.
Question 21 Households change their spending by $10 billion due to a decrease in net wealth. The country's marginal propensity to consume is 0.8. What impact will this have on real GDP? Consumption spending will increase by $10 billion Investment spending will decrease by $50 billion Consumption spending will increase by $50 billion Consumption spending will decrease by $50 billion O Consumption spending will decrease by $10 billion O ooo O
$ Macmillan Learning The Wong family has a disposable income of $80,000 annually. Currently, the Wong family spends 80% of new disposable income on consumption. Assume that their marginal propensity to consume is 0.8 and that their autonomous consumption spending is equal to $10,000. What is the amount of the Wong family's annual consumer spending?
When households cut back on their spending, then in the short run we tend to see the price level ______ and equilibrium output __________. fall; fall rise; fall rise; rise fall; rise
6 If the marginal propensity to consume (MPC) is 0.40, the expenditure multiplier will be equal to _______ . (Enter your answer using ONE decimal place)
Consider the graph below: Planned Aggregate Expenditure (PAE, billions of $) 1000 900 800 700 600 500 400 300 200 100 0 100 200 300 400 500 600 700 800 1 PAE 2 PAE Y PAE₁ 900 1000 Actual Aggregate Expenditure (Output or GDP, billions of $) a. What is the expenditure multiplier in this economy? b. What is the marginal propensity to consume in this economy?